Blockbuster CEO confident to meet Q1 debt covenant

By IBT Staff Reporter01/09/08 AT 1:56 PM

Blockbuster Inc Chief Executive James Keyes said on Wednesday he was comfortable the nation's leading DVD rental chain will meet financial targets of its debt agreements in the first quarter and beyond.

We found that the first quarter was actually favorable in many ways, said Keyes at Citigroup's 18th annual Global Entertainment, Media & Telecommunications Conference in Arizona.

I'm confident that we'll certainly meet the covenant requirements in the first quarter and going forward, he said in a presentation that was webcast.

Blockbuster's debt covenants require it to maintain a minimum level of earnings before interest, taxes, depreciation and amortization (EBITDA) as well as a certain level of EBITDA in relation to its debt.

Keyes said the company was beginning to get some traction in same-store sales and with consumer response to Blockbuster's efforts to find a balance between online distribution and boosting its in-store business.